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Barbara Weltman

Big Ideas for Small Business, Inc.

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SBA Oversite to Pandemic-related Programs

December 18, 2022 / By Barbara Weltman

The SBA Inspector General’s Semiannual Report details the SBA actions under congressional programs created to help small businesses during the pandemic. What the report shows is that the SBA wasn’t adequately equipped to handle the PPP and other programs. The result: fraud, the extent of which is not fully known. The report lists some SBA successes in addressing fraud. Example: A Colorado man pled guilty and was sentenced to two concurrent 66-month terms and to pay $367,552 in restitution to SBA. Between March and October 2020, he devised a scheme to defraud and obtain money by means of materially false representations on his EIDL and PPP loan applications. As a result of the scheme, he received two EIDLs totaling $185,500, and one PPP loan for $20,052. #IdeaoftheDay

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